Colonial BancGroup Inc.'s new chief executive officer received a rough welcome, getting slapped with a cease-and-desist order after a week on the job.

The $26.4 billion-asset Montgomery, Ala., company said Tuesday that its Colonial Bank had entered the agreement with the Federal Deposit Insurance Corp. and the Alabama State Banking Department. The bank agreed to more regulatory oversight and to raise its Tier 1 leverage ratio to 8% by Sept. 30. The ratio stood at 5.5% at March 30.

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